LIMA, Oct 26 (NNN-ANDINA) — The Inter-American Development Bank (IDB) has approved a loan of up to US$300 million in favor of Peru, with disbursements contingent to the occurrence of a natural or technological disaster, a situation of emergency, or economic and/or financial crisis, in the country.
According to Supreme Decree No. 228-2023-EF published on Wednesday in El Peruano Official Gazette, the contingent loan in support of policy reforms with a deferred disbursement option is called “Reform Program to Support Economic Recovery and Competitiveness II.”
The full amount of loan can be disbursed over a period of three years, from the date the respective loan contract enters into force, and is renewable for three additional years.
The amortization period, which does not exceed 20 years from the date the corresponding loan contract is signed, shall be determined in each disbursement request during the above-mentioned period and can be changed according to IDB policies.
The regulation indicates that an initial fee of 0.50% of the amount being borrowed shall be paid, as well as a renewal fee equal to 0.0% of the non-disbursed balance of the contingent loan, which can be regularly changed by the Bank.
Moreover, an annual fund-freezing fee equal to 0.38% of the balance to be disbursed from the contingent loan shall be paid according to IDB policies.
Likewise, it states that there is no inspection or surveillance fee during the disbursement period, unless the IDB restores it, in which case no more than 1% of the amount being borrowed can be charged in a determined six-month period.
Furthermore, the decree indicates that the executing unit is the Ministry of Economy and Finance (MEF), through the General Directorate of Public Treasury. — NNN-ANDINA
